On 1 December 2013. John and Petty Driver formed a corporation called Susquehanna Equipment Rentals. The new corporation was able to begin operations immediately by purchasing the assets and taking over the location of Rent-lt, on equipment rental company that was going out of business. The newly formed company uses the following accounts: Cash Accounts Receivable Prepaid Rent Unexpired Insurance Office Supplies Rental Equipment Accumulated Depreciation Rental Equipment Notes Payable Accounts Payable Interest Payable Salaries Payable Dividends Payable Uneamed Rental Fees Income Taxes Payable Share Capital Retained Earnings Dividends Income Summary Rental Fees Earned Salaries Expense Maintenance Expense Utilities Expense Rent Expense Office Supplies Expense Depreciation Expense Interest Expense Income Taxes Expense The corporation performs adjusting entries monthly. Closing entries are performed annually on 31 December. During December, the corporation entered into the following transactions: Dec. 1 Issued to John and Potty Driver 25.000 new shares in exchange for a total of $250.000 cash. Dec. 1 Purchased for $240,000 all of the equipment formerly owned by Rent-lt. Peid $136,000 cash and issued a one-year note payable for $104.000. The notes, plus all 12-months of accrued interest, are due 30 November 2013 Dec. 1 Poid $9.900 to Shapiro Realty as three months' advance rent on the rental yard and office formerly occupied by Rent-lt. Dec. 4 Purchased office supplies on account from Modern Office Co., $2,000. Payment due in 30 days. (These supplies are expected to last for several months: debit the Office Supplies asset account.) Dec. 8 Received $8,700 cash as advance payment on equipment rental from McNemer Construction Company. (Creclit Unearned Rental Fees.) Dec. 12 Paid salaries for the first two weeks in December, $4,600. Dec. 15 Excluding the McNamer advance, equipment rental fees earned cluring the first 15 days of December amounted to $18.400, of which $13,000 was received in cash. Dec. 17 Purchased on account from Earth Movers Limited, $800 in parts needed to repair a rental tractor. (Debit an expense account.) Payment is due in 10 days. Dec. 23 Collected $2.300 of the accounts receivable recorded on15 December Dec. 26 Rented a backhoe to Mission Landscaping at a price of $300 per day, to be paid when the backhoe is returned. Mission Landscaping expects to keep the backhoe for about two or three weeks. Dec. 26 Paid biweekly salaries, $4.500. Dec. 27 Paid the account payable to Earth Movers Limited, $800. Dec. 28 Declared a dividend of 10 cents per shere, payable on 15 January 2014 Dec. 29 Susquehanna Equipment Rentals was named, along with Mission Landscaping and Collier Construction, as a co-defendant in a $27.000 lawsuit filed on behalf of Kevin Davenport. Mission Landscaping had left the rented backhoe in a fenced construction site owned by Collier Construction. After working hours on 26 December, Davenport had climbed the fence to play on parked construction equipment. While playing on the backhoe, he fell and broke his arm. The extent of the company's legal and financial responsibility for this accident, if any, cannot be determined at this time. (Note: This event does not require a journal entry at this time, but may require disclosure in notes accompanying the statements.) Dec. 29 Purchased a 12-month public-liability insurance policy for $9.480. This policy protects the company against liability for injuries and property damage caused by its equipment. However, the policy goes into effect on 1 January 2014, and affords no coverage for the injuries sustained by Kevin Davenport on 26 December Dec. 31 Received a bill from Universal Utilities for the month of December, $660. Payment is due in 30 days. Dec. 31 Equipment rental fees earned during the second half of December amounted to $20,100, of which $15,600 was received in cash. Data for Adjusting Entries a. The advance payment of rent on 1 December covered a period of three months. b. The annual interest rate on the note payable to Rent-It is 6 percent. c. The rental equipment is being depreciated by the straight-line method over a period of eight years. d. Office supplies on hand at 31 December are estimated at $690. e. During December, the company earned $4,000 of the rental fees paid in advance by McNomer Construction Co.on 8 December f. As of 31 December, six days' rent on the backhoe rented to Mission Landscaping on 26 December has been earned. g. Salaries earned by employees since the last payroll date (26 December) amounted to $1.800 at month- end. h. It is estimated that the company is subject to an income tax rate of 40 percent of profit before income taxes (total revenue minus all expenses other than income taxes). These taxes will be payable in 2014. 1. value: 60.00 points Journalize the December transactions. Do not record adjusting entries at this point (In cases where no entry is required, please select the option "No journal entry required for your answer to grade correctly. Leave no cells blank - be certain to enter "0" wherever required. Omit the "S" sign in your response.) General Journal Credit Date Dec. 1 Debit 25000 Cash Share Capital 25000 1 240000 Rental equipment Cash Notes payable 136,000 104,000 1 9900 Prepaid rent Cash 9900 4 2000 Office supplies Accounts payable 2000 8 8700 Cash Unearned rental fees >> 13.000 5.400 18400 17 > 800 Maintenance expense Accounts payable 800 23 Cash 2300 Accounts receivable 2300 26 No journal entry required No journal entry required 0 26 4800 Salaries expense Cash 1> 4800 27 800 Accounts payable Cash 800 28 2500 Dividends Dividends payable >> 2500 29 No journal entry required No journal entry required 0 29 9480 Unexpired insurance Cash 9480 31 880 Utilities expense Accounts payable 860 31 Cash Accounts receivable (Click to select) 15.800 4.500 >> 13.000 5.400 18400 17 > 800 Maintenance expense Accounts payable 800 23 Cash 2300 Accounts receivable 2300 26 No journal entry required No journal entry required 0 26 4800 Salaries expense Cash 1> 4800 27 800 Accounts payable Cash 800 28 2500 Dividends Dividends payable >> 2500 29 No journal entry required No journal entry required 0 29 9480 Unexpired insurance Cash 9480 31 880 Utilities expense Accounts payable 860 31 Cash Accounts receivable (Click to select) 15.800 4.500